Actuarial factors - Purchase of service.

82-05-04-04. Actuarial factors - Purchase of service. Whenever the North Dakota Century Code permits a member to purchase service on an actuarially equivalent basis, the following actuarial assumptions shall be used: 1. Interest rate - 7.25 percent per year, compounded annually. 2. Mortality rates - the same table specified in section 82-05-04-02 for nondisabled members. 3. Retirement - the member will be assumed to retire at the age at which the member is first eligible for an unreduced retirement benefit. Such unreduced retirement date will be determined taking into account any purchased service and assuming the member continues in full-time covered service. 4. Salary increase rate - Increases are assumed to occur once each year. The following table shows the increase rates indexed by the member's service (excluding any service being purchased): Percentage Increase at End of Years From Hire Year 1 14.80% 2 6.80% 3 6.55% 4-5 6.30% 6-7 5.80% 8-9 5.55% 10-12 5.30% 13-14 5.05% 15-16 4.80% 17-19 4.55% 20-23 4.30% 24-30 4.05% 31 and over 3.80% History: Effective May 1, 2000; amended effective July 1, 2008; April 1, 2016; July 1, 2021. General Authority: NDCC 15-39.1-07 Law Implemented: NDCC 15-39.1-16, 15-39.1-24 3